Your shop can keep more of every job you finish.
A retirement plan, an S corp salary that holds up, and well-timed truck purchases can lower the tax on what your shop earns. Summer Associates models the federal and Connecticut result before you add crew, buy equipment, or set your salary.
Or call (203) 327-4311 to talk with our Stamford office.
Enrolled agents
Our practitioners are enrolled to practice before the Internal Revenue Service.
Federal and Connecticut
We model federal and Connecticut tax together, so you see the state effect of a federal move before you make it.
Local to Fairfield County
Based in Stamford and serving clients for over 35 years.
Planning, not just filing
We focus on the decisions you can still change: elections, timing, and year-end moves.
Where a trade business can lower its tax and its risk
The biggest planning decisions for a trade business come in three places: payroll structure, retirement savings, and the way you buy trucks and tools.
Get worker classification right
Misclassified helpers create back payroll taxes, penalties, and state audits. Correct the arrangement before an injury claim exposes it.
How it works →RetirementSafe harbor 401(k) for owner and crew
Defer $24,500 yourself, add profit sharing, and skip the ADP/ACP deferral testing that trips up small plans.
How it works →RetirementSIMPLE IRA as a low-cost starter plan
Deferrals of $17,000, or $18,100 at most shops with 25 or fewer employees, with a 3% match and almost no admin. It is a good first plan for shops with 100 or fewer employees.
How it works →EquipmentSection 179 and bonus on trucks and tools
Write off work vans, heavy pickups, and equipment in the year you put them in service.
How it works →EntityS corp with a defensible salary
Pay yourself a reasonable wage, take the rest as distributions, and save self-employment tax.
How it works →ComplianceOvertime deduction reporting for your crew
Employees can deduct qualified overtime premium pay, and employers must track and report it.
How it works →In-depth guides
Plain-English explainers covering the rules, the numbers, and the common mistakes.
Employee or subcontractor? How to classify your crew in 2026
The IRS common-law test, state ABC tests, the new $2,000 Form 1099-NEC threshold, and what misclassification costs a trade business.
Read the guide · 8 min →Connecticut taxes for trade contractors: a Fairfield County guide
Which Connecticut contractor services are taxable, the UI ABC test, 2027 sick leave, the PET election, add-backs on trucks, and Nov. 1 property declarations.
RetirementSIMPLE, SEP, or 401(k)? Choosing a retirement plan for a trade business
Compare SIMPLE IRAs, SEPs, and safe harbor 401(k)s using 2026 limits, and see how SECURE 2.0 credits reduce the cost of starting a plan.
EquipmentWriting off work trucks, vans, and equipment: Section 179 vs. bonus depreciation
How to expense vehicles over 6,000 lbs, the SUV limit, when bonus depreciation works better than Section 179, and how recapture applies when you sell.
How working with Summer Associates starts
The first consultation is free, with no obligation. From the first call to a plan, the process has three steps.
Start with a conversation
Call (203) 327-4311 or send us a note. Tell us what you are working on and what you want to solve.
We review the details
We look at your payroll, 1099 payments, planned truck and equipment purchases, and last return to see which strategies fit and what they could be worth.
You get a plan
We model the options on your numbers, federal and Connecticut, and set out the steps and the deadlines that apply.
Summer Associates Tax Services, 48 Union St, #1C, Stamford, CT 06906. Convenient to clients throughout Fairfield County, including Greenwich, Darien, New Canaan, Norwalk, Westport, and Fairfield.
Book a free consultationThe 2026 numbers that matter
Federal and Connecticut figures trade business owners use for payroll, equipment, and retirement planning.
| Item | 2026 figure | Notes & source |
|---|---|---|
| Form 1099-NEC reporting threshold | $2,000 | For payments made in 2026, up from $600 (26 U.S.C. 6041) |
| Section 179 expensing limit | $2,560,000 | Phase-out begins at $4,090,000 of purchases (IRS) |
| Bonus depreciation | 100% | Permanent for property acquired after Jan. 19, 2025 (IRS) |
| 401(k) employee deferral | $24,500 | Plus $8,000 catch-up at 50+ (IRS) |
| SIMPLE IRA deferral | $18,100 | With 25 or fewer employees and no other plan in the prior 3 years, plus $3,850 catch-up at 50+. Otherwise $17,000 plus $4,000 catch-up (IRS) |
| Total defined contribution limit | $72,000 | Employee plus employer per participant (IRS) |
| Social Security wage base | $184,500 | Matters for S corp salary planning (IRS) |
| Connecticut bonus depreciation add-back | 100% | Deducted 25% a year over the next four years. For Section 179, 80% is added back and recovered the same way (CGS 12-701) |
| Connecticut sales tax on commercial repair and renovation | 6.35% | Applies to work on existing commercial and rental property. Installation and renovation on owner-occupied homes generally aren't taxed (CT DRS) |
Common questions
Do I still have to send 1099s to subcontractors?
Yes, but the threshold rose to $2,000 for payments made in 2026, up from $600. Forms 1099-NEC for 2026 payments are due to recipients and the IRS by February 1, 2027, because January 31 falls on a Sunday.
Can I write off my whole truck this year?
Often, yes. A work truck or van over 6,000 lbs GVWR used more than 50% for business can be expensed with Section 179 or 100% bonus depreciation. SUVs have a lower Section 179 cap, and personal use reduces the deduction.
SIMPLE IRA or 401(k)?
A SIMPLE IRA is cheaper and simpler but caps deferrals at $17,000 for 2026, or $18,100 at most shops with 25 or fewer employees. A safe harbor 401(k) allows $24,500 in deferrals plus profit sharing up to $72,000 total. Most growing shops eventually move to a 401(k).
What is a reasonable salary for an S corp contractor?
It's the amount you would pay someone else to do your job, covering field work, estimating, and management combined. Industry wage data for your trade and region is the usual support.
Do I charge Connecticut sales tax on my labor?
It depends on the property and the service. Installation, renovation, and repair work on existing commercial, industrial, or rental property is taxable at 6.35% on the service portion of the bill. The same work on new construction, or on an owner-occupied home of one to three units with the owner living there, generally isn't. Landscaping, snow plowing, and repairs to units such as furnaces and AC systems are taxable even at an owner-occupied home.
Does Connecticut allow bonus depreciation on my truck?
No. Connecticut adds back 100% of federal bonus depreciation and lets you deduct it 25% a year over the next four years. Only 80% of a Section 179 deduction is added back and recovered the same way, so Section 179 leaves 20% deductible on the state return in the first year.
Find out what your shop could be deducting this year.
In a consultation, we look at your payroll and planned truck and equipment purchases, estimate what a retirement plan or S corp salary could be worth, and tell you whether any of your 1099 workers look like employees.